Vietnam considers VAT refunds for foreign film crews

Vietnam considers VAT refunds for foreign film crews

Vietnam is considering a package of new incentives for the cultural industries, including VAT refunds for foreign film crews shooting in the country, as lawmakers review a draft Law on Cultural Industry Development ahead of its expected passage in October.

The National Assembly’s Committee for Culture and Society on September 8 held a working session with the Ministry of Culture, Sports and Tourism on the draft law, which is scheduled to be discussed and considered for approval at the National Assembly’s October sitting.

Photo: baodautu.vn

The draft proposes six key policy groups and six special mechanisms aimed at creating new momentum for Vietnam’s cultural industries, with incentives designed to attract investment, develop infrastructure, unlock intellectual property assets and expand domestic and international markets.

Among the proposed measures is a VAT refund mechanism for foreign film crews, alongside partial cost support for cultural industry projects with high economic value and additional incentives for the publishing sector.

The draft also proposes investment incentives for cultural industry infrastructure, original intellectual property assets and priority products, while seeking to attract foreign investors who meet criteria on technology, intellectual property and value creation in Vietnam.

The package would also introduce new tools to stimulate cultural consumption, including a proposed National Cultural Card, trading platforms and measures to support market development both domestically and internationally.

The six policy groups cover the development of the cultural industry ecosystem, intellectual property, human resources, infrastructure, markets, and finance, investment support and incentives.

On intellectual property, the draft seeks to improve access to finance for businesses whose value is largely held in intellectual property rather than tangible assets. It would also provide a clearer framework for information used in capital contributions, transactions, licensing and credit security, while developing price data and asset profiles to reduce transaction risks.

For human resources, the proposed policies aim to bring training closer to labour market demand, support priority occupations and provide additional tools to pull in highly skilled talent.

Infrastructure is another focus, with the draft proposing to reduce land and shared infrastructure costs for cultural industry businesses and creative entities. Given the links with land, planning, public assets and investment, incentives would be tied to project classifications, eligibility conditions and performance assessments.

The draft also identifies market development as a major impediment for Vietnamese cultural products, citing limited commercialisation capacity, overseas intellectual property protection, transaction infrastructure, distribution networks and international promotion.

Its proposed market policies would therefore target both supply and demand, while expanding access to Vietnamese cultural products at home and overseas. Consumer support would be designed to improve access for eligible groups without interfering with prices set by businesses.

On financing and investment support, the draft seeks to use public resources to develop shared infrastructure, share part of investment risks and encourage private capital, rather than replace businesses’ own investment. Support and incentives would be linked to eligibility criteria, documentation, recovery mechanisms and performance assessments.

The proposed framework is expected to provide a broader policy foundation for Vietnam’s cultural industries, which have increasingly been viewed as an emerging source of economic value and a potential driver of new investment and creative activity.

If passed as planned, the law is expected to address existing policy obstructions and create a more favourable framework for cultural businesses and investors to develop and expand in Vietnam.

VIR